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New State Energy Policy

An updated version of the State Energy Policy, prepared by the Ministry of Industry and Trade, is to be introduced.

The draft has officially been considered and discussed by the Government, who have stated that they will decide on a final approval of it once the results of the Strategic Environmental Assessment procedure have been presented.

Energy policy is one of the principal components of Czech economic policy. The State Energy Policy document, originally adopted in 2004, sets out the Czech Republic’s priorities and objectives for the energy sector over the next 30 years.

The updated version of the policy has been prepared based on an analysis of previous trends and the anticipated development of conditions critical to the energy sector in the Czech Republic. Key priorities and objectives in the new policy include:

Focus on domestic energy sources: the policy gives preference to using all available domestic energy sources and states the necessity of keeping dependence on energy imports to a sustainable level. By 2040, 80% of all energy consumed is expected to be from domestic sources.

Balanced mix of energy resources: the policy envisages that, by 2040, 50-60% of net electricity consumption will derive from nuclear power, 18-25% from renewable and secondary energy sources, 5-15% from natural gas and 15-25% from brown and black coal.

Strengthening role of nuclear energy: the policy envisages that, at Temelin nuclear power station, the third and fourth nuclear units will be completed, and, at Dukovany nuclear power station, the life of the existing four units will be prolonged and a fifth unit built.

Elimination of renewable energy support: the policy anticipates that renewable energy sources will become more economically viable and that state support will be gradually eliminated.

Decreasing use of coal in electricity production: the policy envisages that new coal-fuelled energy sources would only be permitted to produce combined heat and power.

Use of waste: the policy encourages the use of waste in energy production with the goal of utilizing of up to 80 % of its combustible part.

Development of distribution system: the policy anticipates developing and strengthening the distribution system to allow connection of new electricity production capacities, as well as the implementation of a smart energy network system.